Gold markets initially fell during the week but found enough support at the $1270 level to turn around and form a bit of a supportive candle. This is essentially a hammer, but I don’t consider it as much, because we did give back a bit too much. There is also a downtrend line just above, so it’s very likely that there is plenty of resistance there. That being said and with all of the noise out there, we need to simplify the chart if it’s at all possible.
Gold Price Predictions Video 27.05.19
To simplify the chart, I’m looking at the $1300 level as a major resistance. If we can break above there, then it’s assigned to start buying gold. On the other hand, if we break down below the $1270 level, then the market unwinds. If it goes down to the $1250 level, and then possibly the $1200 level longer-term. All things being equal, we are on the precipice of a bigger move so you should be paying attention to this chart. Daily closes above or below the numbers that I have mentioned are the keys for longer-term moves. When we get the signals, the market should start to lean to one direction or the other.
With all of the global concerns going on right now and the noise that continues to be upfront, it’s difficult to imagine a scenario where gold is stable. We are certainly going to make a bigger move, but sometimes we get paid to wait on that move. I think that’s a good way to look at the gold market right now.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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